Choi Tae-won: "SK Hynix Considering Establishing HBM Production Facility in Japan"

Interview with Nikkei during Japan visit
"Considering establishing R&D facilities and investment in Japan"
Regarding Kioxia, "Appropriate response"

Choi Tae-won, chairman of SK Group, hinted at establishing a high-bandwidth memory (HBM) production facility and a research and development (R&D) center in Japan. With the rising demand for artificial intelligence (AI) semiconductors, HBM is also gaining attention, creating a situation where production must be increased. He emphasized that the most important condition for the production base is the procurement of clean energy. As the chairman of the Korea Chamber of Commerce and Industry (KCCI), Chairman Choi also stated that "Korea-Japan cooperation is not an option but a necessity."

Chairman Chey Tae-won of SK Group (left) is having a conversation with Takeshi Ninami, President of Suntory Holdings, at the Nikkei Forum held at the Imperial Hotel Tokyo on the 23rd. Photo by SK Group [Image source=Yonhap News]

In an interview with Japan's Nihon Keizai Shimbun (Nikkei) on the 23rd, Chairman Choi said, "Recently, as demand for AI chips has increased, demand for HBM has also risen accordingly." He is currently visiting Japan to attend the ‘29th Future of Asia’ forum held at the Imperial Hotel in Tokyo, hosted by Nikkei.

Chairman Choi explained that SK Hynix is in a situation where it must secure additional base locations capable of producing HBM. SK Hynix is leading the HBM market, practically monopolizing the supply of HBM3 to Nvidia (USA), a leading AI chip company. Since March, it has been the first memory company to deliver the HBM3E 8-stack product.

Regarding the new HBM production base, Chairman Choi said, "We are considering Japan, the United States, and other locations." Especially concerning the production base, he stated, "The international community’s demand for carbon reduction throughout the semiconductor supply chain is strengthening, so the ability to procure clean energy is the most important factor." Chairman Choi also revealed plans to collaborate with Japanese companies to jointly research and develop semiconductor technology. He said, "We are considering establishing new R&D facilities and investing in Japanese companies."

Regarding Kioxia in Japan (formerly Toshiba Memory), in which SK Hynix made an indirect investment of 4 trillion won in 2018, he said, "As an investor, we hope for Kioxia’s growth and will appropriately respond to necessary matters," adding, "We also plan to explore new opportunities for further cooperation." In Japan, there is speculation that SK Hynix and Kioxia may cooperate on HBM through SK Hynix’s investment in Kioxia. According to local foreign media, SK Hynix proposed a joint HBM production plan to Kioxia in early March. Jiji Press analyzed, "It seems SK aims to establish a rapid production increase system by utilizing Kioxia’s factories in Yokkaichi and Kitakami." The HBM cooperation between the two companies is also cited as a reason why SK Hynix opposes the merger of Kioxia and Western Digital (WD)’s semiconductor division in the United States. If SK Hynix partners with Kioxia, it will gain the opportunity to utilize Kioxia’s vast production infrastructure and further solidify its leading position in the HBM market. Kioxia ranked fourth in the NAND flash memory market with a 14.5% share as of the third quarter of last year.

Chairman Choi, as the chairman of KCCI, revealed plans to establish a Korea-Japan platform. The plan is to create a platform next year where Korea and Japan can discuss and resolve issues arising in economic and social fields together. Chairman Choi particularly said, "Korea and Japan can cooperate more in the fields of energy and environment." He added, "I am confident that the platform will be an opportunity for the future restoration of relations between the two countries."